REQUEST FOR PROPOSALS (RFP)
Capitol Region Education Council (CREC)
on behalf of the Special Education Cost Model Task Force
Study the Feasibility of the Use of a Captive Insurance Entity
Related to Unpredictable Special Education Costs
The Capitol Region Education Council (CREC), on behalf of the Special Education Cost Model
Task Force (Task Force), is seeking a proposal to conduct a feasibility study for the creation of a
captive insurance company for financing special education costs to provide fiscal stability to
Connecticut municipalities and school districts related to unpredictable local special education
costs, while maintaining current state funding levels for special education services.
Disclaimer: CREC is serving only to administer this RFP and act as a pass-through financial agent
for the funding to support this study. As a Regional Educational Service Center (RESC), pursuant
to Connecticut General Statutes §§ 10-66a and 10-66c, regional education service centers are
established by the State Board of Education for the purpose of cooperative action to furnish
programs and services to boards of education and are a public educational authority acting on
behalf of the state of Connecticut. The Task Force voted at its meeting on September 11, 2018
to request CREC’s assistance. CREC is not a member of the Task Force and the content
expressed in this RFP does not reflect the views of CREC.
The Connecticut General Assembly established the Task Force in Section 70 of Public Act 17-2 of
the June Special Session (“JSS”) to conduct a feasibility study regarding alternative methods for
funding special education in the State of Connecticut, and addressing the factors impacting
increasing costs and lack of local fiscal predictability related to the provision of special
education services. The Task Force will include the results of this feasibility study in its final
report to the Connecticut General Assembly, in addition to analysis of any other special
education models it may study or recommend, independent of the work contained herein.
The feasibility study in this request for proposals shall relate to the examination of special
education predictable cost cooperative models for funding special education, the feasibility of
its composition as a captive insurance company, designed to increase predictability in special
education funding to towns and school districts. Additional information can be found at
SECTION II – SCOPE OF SERVICES
The services requested in this RFP are authorized in accordance with Sec. 70 of P.A. 17-2, JSS.
The following is the anticipated Scope of Services and Deliverables that the Task Force requests
from the selected bidder:
1. Feasibility Study
TIMEFRAME: October – December
Such feasibility study shall examine two special education predictable cost cooperative
models for funding special education including:
A. An actuarial analysis of the special education predictable cost cooperative model to
provide greater predictability in special education costs to municipalities and school
districts by financing 100 percent of special education costs as developed by the
Goldenson Center for Actuarial Research at the University of Connecticut (attached as
B. An actuarial analysis of an alternative special education predictable cost cooperative
model to finance only the most volatile special education costs related to students
whose educational programs are associated with extraordinary costs. This model will be
developed by the Goldenson Center for Actuarial Research at the University of
Connecticut and be provided to the successful contractor no later than November 26,
C. For each model reviewed, the bidder shall create documentation that explains and
1) How municipalities’ contributions are calculated on an annual basis;
2) The process by which municipalities would be reimbursed for special education
costs incurred throughout the fiscal year; and
3) How a municipality’s experience in a given fiscal year would affect its required
contribution in the subsequent fiscal year.
D. Prepare pro forma financial statements presenting the balance sheets and income
statements for a captive over a multiyear period on an “expected case” basis and under
an “adverse case” scenario.
1) Provide a recommendation for appropriate capital levels/margin or experience
rating features to support the cost volatility exposure.
2) Determine the initial capital investment required to implement the special
education predictable cost cooperative models.
3) Identify sources for funding the required initial capital investment.
2. Stakeholder Input
TIMEFRAME: October – November
A. The consultant shall attend one initial meeting of the Task Force, which will serve as a
planning and strategy session to review information and confirm objectives/goals of the
B. The consultant shall hold six focus group meetings with one in each of the six Regional
Education Service Center (RESC) areas. The representatives invited to the focus groups
shall include key stakeholders representing diverse geographic areas, district sizes and
economic income levels. The Task Force will be responsible for inviting participants for
each of the six focus groups who will include: municipal officials, members of local and
regional boards of education, superintendents, school business officials, and special
education directors. The consultant shall hold one additional focus group with teachers
to discuss their concerns and observations regarding the financing of special education
in Connecticut. The Task Force will be responsible for inviting teachers to participate.
The purpose of these focus groups shall be to:
1) Understand the overall needs of stakeholders in regard to the funding of individual
2) Discuss the proposed funding models as an alternative to the current method of
funding special education services;
3) Discuss any internal or external influences on key special education operational
issues specific to municipalities, school districts, or individual student requirements;
4) Discuss probable financial and other implications to municipalities, school districts,
and students with disabilities; and
5) Discuss the costs and benefits of the models under review and solicit comments,
concerns or suggestions raised by focus group members.
C. Provide a summary of each focus group meeting to the Task Force.
Feedback from the parents of students with disabilities has been gathered through a series
of focus groups conducted by an expert in the provision of special education services, who
was selected by the Task Force through a separate process. This expert shall provide their
findings, and make themselves available to, the consultant performing the feasibility study.
3. Recommendations for Operations
TIMEFRAME: October – November
The consultant shall:
A. Analyze the sponsorship and ownership for a Connecticut captive insurance company as
required by C.G.S. Sec. 38a-91aa to 38a-91tt (the “Captive Act”), including requirements
for the submission of an application to the Connecticut Insurance Department for the
purpose of gaining an operating license for a captive insurance company.
B. Provide a proposed draft budget estimate for initial operational expenses (e.g.
capitalization requirements, fees, taxes, necessary insurance coverages, management
and other service provider fees) associated with management of a captive insurance
C. Provide a description of:
1) A timeline for implementation of the proposed special education funding
2) Key dependencies and prerequisites for such implementation, such as the total
number of towns needed to voluntarily participate in order to function properly,
or whether participation in such model(s) should be mandatory, and
3) Contingency plans for any foreseeable implementation problems.
D. Analyze the reimbursement process between the captive and the municipalities for
special education costs that considers cash flows and budget timelines at the state,
municipal, and school district levels.
SECTION III – DELIVERABLES
1. The consultant shall prepare the draft report of findings, conclusions and recommendations
regarding the feasibility study of proposed special education funding models to the Task
Force no later than December 14, 2018.
2. The consultant shall present and discuss the draft report of the feasibility study at a Task
Force meeting no later than December 21, 2018.
3. The consultant shall issue a final report of the feasibility study, making any necessary
revisions, where appropriate, based on the results of the discussion with the Task Force.
The consultant shall submit the final feasibility study report, which shall include the
feasibility study and any recommendations, no later than January 11, 2019 to the Task
Force. The Task Force shall include the final report of the consultant in its report to the
Connecticut General Assembly.
4. The consultant shall be available to attend public hearings, provide testimony and meet
with committees and members of the General Assembly during the 2019 legislative session
as requested by the General Assembly or the chair of the Task Force.
SECTION IV – TIMELINE
Any questions or requests for additional information should be addressed, in writing, to Cara
Hart via email at email@example.com no later than 12:00 p.m. EST on September 26, 2018. All
questions and responses will be posted by 12:00 p.m. EST on September 28, 2018 at
The due date for proposals is 12:00 p.m. EST on October 5, 2018. The RFP Selection
subcommittee of the Task Force will interview proposed bidders at a date and time
mutually agreeable to the parties.
SECTION V – CONTRACT PERIOD
CREC anticipates that the successful proposer will commence work on or about Tuesday,
October 8, 2018 and continue until June 30, 2019. The contract may, upon mutual consent, be
SECTION VI – CONTRACTOR QUALIFICATIONS
Eligible proposers will be those consultants, companies, and institutions that have a
demonstrated track record in analysis related to general management consulting, captive
insurance management, risk mitigation for government entities, and actuarial consulting.
Applicants must be approved by the Captive Insurance Division of the Connecticut Insurance
Department as having the expertise required to perform the feasibility study as described in
SECTION VII – FORMAT for RESPONSES
Responses to this RFP should be in the following format:
1. Introduction - Include a cover letter to your response, with a statement that you have read
and understood the RFP, and are able to provide the services requested. Your letter should
note any exceptions, and must be signed by the individual who will have overall
responsibility and accountability for all services to be provided. Responses to this proposal
should also include a brief description of your firm’s structure and capabilities.
2. Organizational Chart - Provide a chart illustrating your firm’s organizational structure and
how it might relate to CREC and any school districts, municipalities, or other non-profit
organizations that choose to work with you. Limit your response to one page in length.
3. Resume of Principals - Provide a brief resume of each of the principals assigned to the
project and a description of their role in the project. No more than one page per person.
4. Client Recommendations - Please provide at least 3 client recommendations of previous
projects with contact information. These projects must have been completed within the
last 3 years. Limit one page per client project.
5. Cost of Services - Identify your charges for the services.